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Jilted at the altar by Honeywell International Inc., United Technologies Corp. is still a handsome suitor that will recover from the embarrassment and keep searching for attractive partners, analysts said on Monday.

Hartford, Conn.-based United Technologies, the world's biggest maker of elevators and air conditioners, saw its dream marriage collapse last Friday when a much bigger rival, General Electric Co., muscled onto the scene and eloped with Honeywell with a dowry billions of dollars sweeter than United Technologies was willing to pay.

GE announced its $43-billion stock acquisition of Honeywell, the biggest deal in GE's 108-year history, late on Sunday, officially ending the short-lived menage a trois among three Dow Industrials component stocks.

United Technologies' unsuccessful wooing of Honeywell sparked talk that the company will now train its sights on Rockwell International Corp (NYSE:ROK - news) -- Honeywell's major rival -- whose shares rose sharply on the speculation.

Spokesmen for both United Technologies and Rockwell International said their companies do not comment on rumors and speculation.

``With 'only' $7 billion in sales and market cap, (Rockwell) is looking downright small and vulnerable,' Salomon Smith Barney wrote in a research report. ``Rockwell is certainly a good second choice for UTX and does not bring anti-trust issues since ROK does avionics and UTX does not.'

Always Long,
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There are others that may fit and Geo David is on the hunt.

As reported by Reutors,
Analysts suggested United Technologies might consider deals with Textron Inc.(NYSE: TXT), B.F. Goodrich Co.(NYSE: GR), or RockwellInternational Corp(NYSE: ROK). Rockwell International shares rose as much as 18 percent on Monday as investors speculated it could be a takeover target inthe wake of GE's plan to buy Rockwell's biggest rival,Honeywell. Rockwell shares were up $3-5/8 at $38-7/8, a rise of10.28 percent, in afternoon trade on the New York StockExchange. Analysts said in addition to United Technologies,interested buyers could include Siemens AG and Tyco International(NYSE: TYC). Paul Nisbet, an analyst at JSA Research in Newport, R.I.,said Providence, R.I.-based Textron Inc. could be a good fit with United Technologies, because both companies make helicopters. Textron shares, which have fallen by 45 percent in the pastyear, were up 2.68 percent at $43-1/8 in afternoon trade on the New York Stock Exchange. "That stock is down very sharply (inrecent months), as was Honeywell's, and probably is down farenough to make it quite interesting (as a takeover target),"Nisbet said. Nisbet also said B.F. Goodrich could be an attractive acquisition "because it is quite heavily into the aircraft-maintenance business."

Time will tell
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and the hunt heats up.

GE Move Flags Aerospace Consolidation;
Honeywell Pact's Message: Find Partners

The surge of interest touched off by GE's largest-ever acquisition sent shares surging for diversified companies with big aerospace holdings. Rockwell International Corp., the Milwaukee company that is a major player in cockpit electronics and industrial automation, was up 14%, or $5.06, to $40.31 at 4 p.m. Monday in New York Stock Exchange composite trading. BFGoodrich Co., a large aerospace supplier that is based in Charlotte, N.C., climbed 5.4%, or $2, to $39 on the Big Board, while Cleveland's Parker-Hannifin Corp. rose $2.63, or 7.9%, to $36.
United Technologies is sure to be a consolidator, says Michael Urfirer, an investment banker for Bear Stearns Cos., which represented Honeywell in the agreement to sell to GE, but beyond that, "I just don't see where the big buyers are." Mr. Urfirer also says that in most of the big possible transactions ahead, the best targets are the companies that have interests beyond aerospace operations.


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